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Minister requests forensic audit report of Mangaung's IPTN

───   LUCKY NKUYANE 11:41 Mon, 11 Apr 2022

Minister requests forensic audit report of Mangaung's IPTN | News Article
PHOTO: Lucky Nkuyane

The National Minister of Transport, Fikile Mbalula, has requested a forensic audit report of the controversial multimillion-rand Integrated Public Transport Network (IPTN) Hauweng project.

Minister Mbalula revealed this over the weekend whilst addressing hundreds of residents who attended President Cyril Ramaphosa's Presidential Imbizo in Mangaung. The announcement follows stringent allegations of massive fraud and corruption in the project with further allegations that ten buses were procured through a lease contract and facilitation process that involved a middle man who scored a facilitation fee of about R20 million.

It’s alleged that the metro has missed at least six deadlines in phase 1 to complete the IPTN project, after numerous warnings by the Parliament’s Portfolio Committee on Transport. The project is said to have costed the ailing metro at least R2 billion since its commencement in 2016, with feasibility studies that are said to have started in 2011, including accruals that ran into millions of rand.

The Government Communication spokesperson, Phumla Williams, announced on Thursday that the metro has been placed under National Government's control. Williams added that this is in terms of Section 139(7) of the Constitution. This section states that after a municipality fails to make progress in improving its financial and service delivery performance, Cabinet may decide to place it under national intervention.

This means that the metro can only pass a budget and bylaws. It does, however, not have the authority to borrow money or appoint employees.

#BreakingNews: Mangaung stripped of its powers by National Government

“We are giving R1,4 billion and R900 million in the IPTN project, aimed at fixing roads. The fixing of the roads does not have to wait for the visit of the President, roads must always be fixed. We are revisiting the municipality after the Easter holidays and will attend to the road problems at Soutpan and [elsewhere] that you mentioned in Mangaung. I'm not referring to the whole of the Free State. I will bring the South African National Roads Agency (SANRAL) to look at their community development budget to help fix the roads,” Mbalula told residents.

Addressing the workers he says he heard that residents raised rumours of massive corruption. “But I have already told the municipality that I want a forensic audit immediately and in June I'll be coming back to check how far is the project and if, in case the money was stolen, [people have been arrested],” Mbalula further added.

The project has since faced numerous delays after objections and protests from irate residents who wanted a portion of the project.

Residents of ward 47 in Heidedal wanted to be allocated at least 30% of the project in terms of the Preferential Procurement Policy Framework Act 5 of 200. 

Also read: Case between Heidedal residents, metro postponed

The Mangaung Business Transformation Umbrella (Mabtu), of which Foko Motlatsi Phillimon Contractors (FMP) is a member, in 2019 occupied the front entrance to the Free State High Court in support of a fellow contractor who dragged the metro to court over the Integrated Public Transport Network contract.  

Also read: Mabtu threatens to shut down Bfn over IPTN

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